NCLT allows debit from 'suspense account' for a company under CIRP

Varun Marwah February 25 2019

While the NCLAT has previously held that monies from a corporate debtor’s account cannot be appropriated by a financial creditor once Corporate Insolvency Resolution Process (CIRP) is initiated, the Allahabad Bench of the NCLT recently passed an order allowing  such appropriation.

However, the withdrawal was made from the suspense account maintained by the bank.

CIRP against Uniworld Sugars Private Limited (Corporate Debtor) was initiated on May 25, 2018  based on a filing made by an operational creditor. Before CIRP was . . .

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